NEUBERGER BERMAN ENERGY INFRASTRUCTURE AND INCOME FUND ANNOUNCES AMENDMENT TO LEVERAGE FACILITY
Neuberger Berman Energy Infrastructure and Income Fund (NYSE American: NML) has announced an amendment to its revolving credit facility to increase available debt financing. The amendment expands the lender's total commitment from $125 million to $150 million, aligning the facility more closely with the Fund's current asset level.
Neuberger Berman Energy Infrastructure and Income Fund (NYSE American: NML) ha annunciato una modifica alla sua linea di credito revolving per aumentare il finanziamento del debito disponibile. La modifica amplia l'impegno totale del prestatore da 125 milioni di dollari a 150 milioni di dollari, allineando la struttura più strettamente con il livello attuale degli attivi del Fondo.
Neuberger Berman Energy Infrastructure and Income Fund (NYSE American: NML) ha anunciado una enmienda a su línea de crédito revolving para aumentar el financiamiento de deuda disponible. La enmienda amplía el compromiso total del prestamista de 125 millones de dólares a 150 millones de dólares, alineando la instalación más estrechamente con el nivel de activos actual del Fondo.
Neuberger Berman Energy Infrastructure and Income Fund (NYSE American: NML)는 이용 가능한 채무 금융을 늘리기 위해 환승 신용 시설의 수정을 발표했습니다. 수정안은 대출자의 총 약속을 1억 2500만 달러에서 1억 5000만 달러로 확장하여 시설이 기금의 현재 자산 수준과 더 밀접하게 일치하도록 합니다.
Neuberger Berman Energy Infrastructure and Income Fund (NYSE American: NML) a annoncé un amendement à sa ligne de crédit renouvelable pour augmenter le financement par dette disponible. L'amendement élargit l'engagement total du prêteur de 125 millions de dollars à 150 millions de dollars, alignant la facilité plus étroitement avec le niveau d'actifs actuel du Fonds.
Neuberger Berman Energy Infrastructure and Income Fund (NYSE American: NML) hat eine Änderung seiner revolvierenden Kreditfazilität angekündigt, um die verfügbaren Schuldenfinanzierungen zu erhöhen. Die Änderung erweitert das gesamte Engagement des Kreditgebers von 125 Millionen Dollar auf 150 Millionen Dollar und bringt die Fazilität näher an das aktuelle Vermögensniveau des Fonds.
- Increased borrowing capacity by $25 million
- Enhanced financial flexibility through expanded credit facility
- Higher potential leverage exposure and associated risks
- Increased interest expense burden
Insights
The $25 million expansion of NML's credit facility to $150 million represents a strategic financial move that warrants careful analysis. This 20% increase in borrowing capacity suggests management's confidence in their investment pipeline and ability to deploy capital effectively in the energy infrastructure sector.
The timing of this facility expansion is particularly noteworthy. With energy infrastructure assets currently presenting attractive valuations and steady income potential, the enhanced borrowing capacity positions NML to capitalize on market opportunities while maintaining prudent leverage levels. The fund's move to align borrowing capacity with asset levels indicates disciplined balance sheet management.
Several key implications emerge from this development:
- Increased investment flexibility without necessarily requiring immediate deployment of the full facility
- Enhanced ability to maintain stable distributions through market cycles
- Potential for opportunistic acquisitions in the energy infrastructure space
- Improved competitive positioning relative to peer funds
However, investors should note that while the expanded facility provides greater financial flexibility, it also introduces additional interest rate sensitivity to the fund's cost structure. The success of this strategy will largely depend on management's ability to deploy the additional capital at returns that sufficiently exceed the facility's borrowing costs.
About Neuberger Berman
Neuberger Berman is an employee-owned, private, independent investment manager founded in 1939 with over 2,800 employees in 26 countries. The firm manages
Statements made in this release that look forward in time involve risks and uncertainties. Such risks and uncertainties include, without limitation, the adverse effect from a decline in the securities markets or a decline in the Fund's performance, a general downturn in the economy, competition from other closed end investment companies, changes in government policy or regulation, inability of the Fund's investment adviser to attract or retain key employees, inability of the Fund to implement its investment strategy, inability of the Fund to manage rapid expansion and unforeseen costs and other effects related to legal proceedings or investigations of governmental and self-regulatory organizations.
Contact:
Neuberger Berman Investment Advisers LLC
Investor Information
(877) 461-1899
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SOURCE Neuberger Berman
FAQ
What is the new credit facility limit for Neuberger Berman Energy Infrastructure Fund (NML)?
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